Protocol for unsecured lending TrueFi is the newest project to debut on Optimism, Ethereum’s popular layer-2 scaling solution.
TrueFi’s lender community will benefit from a speedier and less expensive user experience, as well as exposure to a larger pool of retail lenders, by launching on Optimism.
In a written statement, Rafael Cosman, co-founder of TrustToken, said, “TrueFi users may now lend, borrow, and start portfolios on Optimism to experience drastically reduced transaction costs and network speeds.” He went on to say:
“Since Optimism transactions are on average 77x cheaper than Ethereum, we expect greater adoption from non-institutional lenders, hopefully increasing global access to TrueFi’s financial opportunities.”
TrueFi was developed by TrustToken, a stablecoin operator, and distributed to institutional clients in November 2020. TrustToken created a new loan marketplace on TrueFi in February with the goal of allowing financial institutions to design and launch their own financial products.
More than 40 protocols are currently deployed on Optimism, indicating that more projects are eager to make use of increased features such as scalability and lower pricing.
Optimistic Rollups, a scaling method that works in combination with Ethereum’s main chain, have been intended to accommodate any decentralized apps operating on Ethereum.
With more projects launching on Optimism in the last week, the chain’s total value locked, or TVL, has increased. TVL currently has a market capitalization of $369 million, up over $100 million since May 29. Late in April, the network TVL reached a high of $510 million.
